I just uploaded debootstrap 1.0.20~jaunty1 to jaunty-backports. Can you
reproduce this bug with this version? My suspicion is that this change
will have fixed it:
  * For recent Ubuntu versions, move $TARGET/sbin/initctl aside in the same
    way we do start-stop-daemon, so that attempts to control Upstart jobs
    won't inadvertently affect jobs in the host system.

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building vm image on text console causes gettys to stop respawning
https://bugs.launchpad.net/bugs/392377
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